Having trouble pulling the trigger!

[Michael Davis]

I'm constantly looking at the market as I'm a licensed agent with Keller Williams.
I plan to leverage 100k from a HELOC.
I'm just not seeing something that makes me want to dive in feet first.
I person I ran into some who does flips said maybe try doing a flip for the first time to gain the confidence. However I can't bring myself to have to pay all the capital gains taxes.
Also I wouldn't want to need to pay back the HELOC and suffer a capital gains tax payment.

Any advice?

Should I start looking further outside my back yard?

Trying to get a BRRRR that will likely cash flow or break even on.

I'm a reasonable area with relatively low crime rates.

[Cole Booth]

Hey Michael, 

Since you are a licensed realtor, there are specific markets you know well, I'm sure. You can see average sale prices and calculate the projected ARV of a property post-rehab. Get in touch with a reputable GC to determine what it would cost to rehab a specific property. It would also be beneficial to run a rent schedule to understand lease amounts if rolling the property into a long-term loan interests you. That long-term loan may allow you to cash out, repaying part of all of your initial investment so that you can repeat the process again. This also mitigates capital gains tax because you are not selling the property.

Make sure you are comfortable with the area you are investing in and pull the trigger! 

[Michael Davis]

I guess I'm not comfortable pulling the trigger currently.

I feel like I'm stuck in analysis paralysis, As well as going belly up.

[Ryan Irwin]

@Michael Davis one thing that I would explore are REO/foreclosures. I have had great success in these. Look for the things that are surface level that turn normal buyers away (smells, messes, etc.) You can then turn it over, and still get a great ROI when you refinance and not have to get hit with capital gains.

[Andrew Postell]

@Michael Davis thanks for the post here.  I think based on what you typed above I would recommend to continue to gain some education on real estate.  Usually, people don't feel comfortable because they can't see all the angles or don't know what all of the nuances are.  And then fear sets in because they don't know what they don't know.  And while you may not know EVERYTHING on your first deal, it's probably good to know a little more. I'm saying this because if you do a flip...you don't pay capital gains taxes. Also, if you payback a HELOC...that doesn't trigger paying capital gains tax either. Likewise, you will also not find ANY property that will cashflow or break even right now.

So, how do we get more education? Try some local real estate meetup groups. Meetup.com is a good resource for those but some of the groups will also post here on Bigger Pockets Marketplace too. Even facebook might have some good local groups for you. But post locally for this. That’s the best bet.

[Roger Flot]

Maybe look into a local group meetup and find someone who is doing what you think you want to do and "partner" with them.

Partnering doesnt have to involve funds, but involving funds can trigger rewards, and allow you to experience the details and strategies while having skin in the game.

There's only one way to get in.  Thats to step in.  Once youve done that, you just step forward again.  Its like a baby walking, once they take a step, they keep walking... even if they fall, they get back up and keep taking steps.

[Jason Allen]

Honestly in most markets right now, good deals are very hard to come by. Even crap deals are getting pretty scarce. Either switch up your strategy for turning up deals, or park your capital somewhere else and keep your powder dry. Eventually inflation will catch up to prices, or prices will fall. The current level of unaffordability is not sustainable long-term; something's gotta give...

[Daniel Dobbs]

If you are going to manage it yourself, the closer it is the better. If you are in paralysis, afraid to go belly up you haven't found the right deal or don't know how to structure the deal in a way that makes it a good deal. Honestly, I would learn more about what you are wanting to do. Flipping and BRRRR are similar but in a flip, you can't pay as much for the property as you might be able to with a BRRRR. Since it is an investment property you can 1031... but if you are married you don't pay so taxes on so much capital gains each year. (Consult a tax expert). Investment property open all kinds of ways to creatively, legally, not pay those taxes. You can find deals in every market, it comes down to where you want, what you're willing to pay and still make a profit, and what you want to do with it.

Have you read the BRRRR? or But it, rent it, profit? or First time land lord? BP has some really good videos in this.

If you are unsure the deal probably isn't any good. 

[V.G Jason]

Quote from @Michael Davis:

I'm constantly looking at the market as I'm a licensed agent with Keller Williams.
I plan to leverage 100k from a HELOC.
I'm just not seeing something that makes me want to dive in feet first.
I person I ran into some who does flips said maybe try doing a flip for the first time to gain the confidence. However I can't bring myself to have to pay all the capital gains taxes.
Also I wouldn't want to need to pay back the HELOC and suffer a capital gains tax payment.

Any advice?

Should I start looking further outside my back yard?

Trying to get a BRRRR that will likely cash flow or break even on.

I'm a reasonable area with relatively low crime rates.

I stopped right there.

Get better situated. 

[Alecia Loveless]

@Michael Davis I will post to you what I have In a few other places lately.

Get a notebook. Write down your goals for 1 year in real estate. What you want to focus on. Where you want to be in real estate in one year. How much passive income you want In one year. How many properties you want In one year. How many doors you want in one year. Dream big.

Go to the next page. Answer the same questions for where you want to be in three years. If you can see yourself achieving these goals you’re not dreaming big enough!

Go to the next page. Answer the same goals for 5 years. Dream bigger!

Then relook at your goals for year one and dissect them backwards into one month and one week increments until you have a game plan and know how to get started to make your year one a reality.

Revisit this plan every Sunday night to revise you next week and lay out the plan for the week ahead.

[Lara Pfeffer]

Quote from @Michael Davis:

I'm constantly looking at the market as I'm a licensed agent with Keller Williams.
I plan to leverage 100k from a HELOC.
I'm just not seeing something that makes me want to dive in feet first.
I person I ran into some who does flips said maybe try doing a flip for the first time to gain the confidence. However I can't bring myself to have to pay all the capital gains taxes.
Also I wouldn't want to need to pay back the HELOC and suffer a capital gains tax payment.

Any advice?

Should I start looking further outside my back yard?

Trying to get a BRRRR that will likely cash flow or break even on.

I'm a reasonable area with relatively low crime rates.

Michael how about going to your local REIA meetings & partnering with someone who can invest $$ too, and show you the ropes of a flip. It’s a challenge to find a cash flowing property right now but not impossible. See if you can use the MTR strategy there if you’re interested? It’s medium/mid term rentals. Ifyou’re near 2-3 hospitals & 2-3 large companies, you may have enough nurses, corporate folks to make more $$ than a LTR. I’ve heard 30%+ more? Something to explore if you’re adventurous! Check out the BP book: “30 day stay”. I just finished it and it opened my eyes to that strategy!  We’re going to try it sometime, haven’t as yet. Good luck! 

[Logan Lambert]

Quote from @Michael Davis:

I guess I'm not comfortable pulling the trigger currently.

I feel like I'm stuck in analysis paralysis, As well as going belly up.

 Hey Michael,

Can i ask you whats preventing you from pulling the trigger?

[Michael Davis]

Quote from @Logan Lambert:

Quote from @Michael Davis:

I guess I'm not comfortable pulling the trigger currently.

I feel like I'm stuck in analysis paralysis, As well as going belly up.

 Hey Michael,

Can i ask you whats preventing you from pulling the trigger?

 Mostly..not knowing what I don't know.

Trying to invest in my state in the event something goes wrong I can personally be the boots on the ground.

I'm planning to leverage 100k HELOC and don't want to be stuck paying for that if the investment were to go south. Such as going over budget or not appraising for enough. In which case I suppose I could sell the property and recoup most of my money.

Maybe I don't have enough money to invest, and I'm not exactly trying to get in bed with hard/private money lender

[Joshua Christensen]

Quote from @Michael Davis:

I'm constantly looking at the market as I'm a licensed agent with Keller Williams.
I plan to leverage 100k from a HELOC.
I'm just not seeing something that makes me want to dive in feet first.
I person I ran into some who does flips said maybe try doing a flip for the first time to gain the confidence. However I can't bring myself to have to pay all the capital gains taxes.
Also I wouldn't want to need to pay back the HELOC and suffer a capital gains tax payment.

Any advice?

Should I start looking further outside my back yard?

Trying to get a BRRRR that will likely cash flow or break even on.

I'm a reasonable area with relatively low crime rates.

Hey @Cole Booth, getting started is the hardest decision.  Wanting to is not enough.  You're a broker and you help other people make money in real estate, yet you're hesitant yourself.  That's a recipe for some challenges ahead.  When you start betting on YOU and stop worrying so much about hypothetical problems, you'll be better off as an investor and as an agent helping others.  

I did my first deals with other people's money (partners, etc.) then I jumped into a large deal that was over my head.  I borrowed money to get into it and lost it when the deal went south.  Talk about lessons.  In investing, you should be able to take calculated risks to avoid losing money.  That being said, you need to be comfortable with the idea that you may lose what you invest.  Do everything in your power to win every deal, but know that the law of averages is on your side when you do lose on one.  Just do what you can to minimize that.  

When you get confidence in that, then go out and DO IT.  Nothing ever happened in a meeting talking about things.  You have to Do It.  Pull the Trigger.  Do all the homework and risk assessments and pull the trigger.  Even if the first one is not a home run.  Do It!  Roll to the next one.  You will improve over time and the deals will get better.  None of them will ever be perfect.  Let that sink in.  

[Cole Booth]

Quote from @Joshua Christensen:

Quote from @Michael Davis:

I'm constantly looking at the market as I'm a licensed agent with Keller Williams.
I plan to leverage 100k from a HELOC.
I'm just not seeing something that makes me want to dive in feet first.
I person I ran into some who does flips said maybe try doing a flip for the first time to gain the confidence. However I can't bring myself to have to pay all the capital gains taxes.
Also I wouldn't want to need to pay back the HELOC and suffer a capital gains tax payment.

Any advice?

Should I start looking further outside my back yard?

Trying to get a BRRRR that will likely cash flow or break even on.

I'm a reasonable area with relatively low crime rates.

Hey @Cole Booth, getting started is the hardest decision.  Wanting to is not enough.  You're a broker and you help other people make money in real estate, yet you're hesitant yourself.  That's a recipe for some challenges ahead.  When you start betting on YOU and stop worrying so much about hypothetical problems, you'll be better off as an investor and as an agent helping others.  

I did my first deals with other people's money (partners, etc.) then I jumped into a large deal that was over my head.  I borrowed money to get into it and lost it when the deal went south.  Talk about lessons.  In investing, you should be able to take calculated risks to avoid losing money.  That being said, you need to be comfortable with the idea that you may lose what you invest.  Do everything in your power to win every deal, but know that the law of averages is on your side when you do lose on one.  Just do what you can to minimize that.  

When you get confidence in that, then go out and DO IT.  Nothing ever happened in a meeting talking about things.  You have to Do It.  Pull the Trigger.  Do all the homework and risk assessments and pull the trigger.  Even if the first one is not a home run.  Do It!  Roll to the next one.  You will improve over time and the deals will get better.  None of them will ever be perfect.  Let that sink in.  

Thank you for reiterating my initial response. 

[Henry Clark]

The trick is knowing the right questions.  The answers are easy.  

Are you married?

How much money are you ok losing?  Name a figure.

Have you done any deal analysis?

When you do your deal analysis do you calculate failure?

What is the future financial picture you want?

Start small and Make Your Big Mistakes Early.  

[Bud Gaffney]

man just go for it and dont look back. scared $ but dont make no $ :)